Close by reinforcing the nature of the opportunity.
Estimated earnings — forecasted income statements Return on investment — Combining the previous two estimates to determine how much investors can expect their investments to return. What do we do?
References 6.What do we have to offer? What resources do we have? Service or product line: State what you will sell or provide and describe the benefits of each. Probability of Success: Can you reasonably overcome the risks to become profitable? Two questions: Are customers willing to purchase our product or service? Industry is more attractive when: Many suppliers sell a commodity product Substitutes are available Switching costs are low Items account for a small portion of the cost of finished products Ch. Identifying possible niches a small business can occupy profitably. Understand the Differences It's equally important to understand the difference between feasibility study and business plan. What Resources are available to help develop each? Always include cash flow projections.
Where are we going? It assumes your feasibility study has been completed and it was determined the idea is viable.You can actually build or provide it for the cost estimates in the plan. Now you're going to spell out your financial and other objectives, the methods you plan to use to achieve them, and your proposed organizational structure. Consider the Similarities Comparing the similarities between feasibility study and business plan is important because both are used in different ways to help you create a profitable business. They are not the same, and one cannot substitute for the other. Although building a plan does not guarantee success, it does increase your chances of succeeding in business. To attract investors, add current financial information and projections for growth. Two questions: Are customers willing to purchase our product or service? Can you serve their location? The Small Business Administration advises that business plans should include the following: Executive Summary: Include your mission statement, products and or services, some brief information about your leadership team and key employees, as well as the location of your business. Are all Studies created Equal? Potential lenders want to see financial projections, but they are more interested in the strategies for reaching those projections. How do they differ? Company description: Detail the problems your business solves; its target market; its competitive advantages, compared with the competition, and anything else that makes your company superior to others: i. Presentation on theme: "Ch.
Identifying possible niches a small business can occupy profitably. What do we need to get there? Use spreadsheets to generate financial forecasts.
Cost: Feasibility studies can require hiring outside professionals with expertise who will conduct thorough studies, whereas business plans are written by employees of the business, as part of their jobs.
Now you're going to spell out your financial and other objectives, the methods you plan to use to achieve them, and your proposed organizational structure. Can we provide the product or service to customers at a profit? Can you serve their location? The Value Test — proving that: A venture offers investors or lenders an attractive rate of return or a high probability of repayment.